Vodafone signing fewer new customers

New Zealand's biggest mobile phone operator Vodafone said today growth in new customers and revenue slowed in the second quarter.

The company added 32,000 new customers in the three months to June 30, down 27 per cent from the previous quarter, and down nearly 16 per cent on the same period last year. Vodafone said it now had 2.1 million customers.

The New Zealand arm of the British mobile phone giant has about 53 per cent of the mobile market where it competes with local incumbent Telecom Corp. of New Zealand Ltd.

Vodafone's average revenue per user was down nine per cent to NZ$46.60 a month from NZ$51.20. The ARPU is calculated as a rolling average across the three months. Chief Executive Russell Stanners said the decrease in ARPU was due to a reduction in mobile termination rates and the impact of new customers spending less.

Vodafone and Telecom have voluntarily agreed to lower termination rates - the cost of connecting a land-line call to a mobile phone - after New Zealand's competition watchdog recommended both companies be forced to lower rates.

Voice minute usage was down by 5 million minutes to 597 million minutes on the previous quarter but up 57 million on the same quarter a year ago.

- REUTERS